Insecticides (India) Limited Q2 profit falls 5% as costs rise

Insecticides (India) Limited reported consolidated profit after tax of Rs 56.17 crore for the quarter ended September 30, 2026, down 5% from Rs 59.11 crore a year earlier, despite revenue from operations rising 8% to Rs 686.31 crore as material, stock-in-trade, employee and finance costs increased.

What drove Insecticides (India)’s September-quarter profit decline?

Insecticides (India)’s September-quarter profit declined because total expenses grew faster than revenue. Consolidated total expenses rose 9% year on year to Rs 610.34 crore in the quarter ended September 30, 2026, from Rs 561.71 crore, against an 8% rise in revenue from operations to Rs 686.31 crore from Rs 637.70 crore. Profit before tax consequently fell 4% to Rs 75.36 crore from Rs 78.86 crore.

Lower other income and higher finance costs also affected the quarter. Other income was negative Rs 83.86 lakh in the September 2026 quarter, compared with Rs 2.51 crore a year earlier, while finance costs rose 58% to Rs 6.58 crore from Rs 4.16 crore. Tax expense declined to Rs 19.19 crore from Rs 19.75 crore, but this was insufficient to offset the lower pre-tax profit.

How did Insecticides (India)’s revenue and expenses compare year on year?

Insecticides (India) generated higher sales, but reported cost increases absorbed the additional revenue. Cost of materials consumed increased to Rs 401.21 crore from Rs 363.03 crore, purchases of stock-in-trade rose to Rs 76.60 crore from Rs 57.84 crore, and employee benefits expense increased to Rs 54.49 crore from Rs 47.77 crore. These costs were incurred within the group’s single Agro-Chemicals segment, comprising Technical and Formulation products.

Insecticides (India)’s profit after tax margin, calculated as profit after tax divided by revenue from operations, was about 8.2% in the September 2026 quarter, compared with about 9.3% a year earlier. Changes in inventories were negative Rs 22.65 crore, compared with negative Rs 2.89 crore in the prior-year quarter, while other expenses increased to Rs 84.23 crore from Rs 82.47 crore. Basic and diluted earnings per share each declined to Rs 19.30 from Rs 20.31.

What changed in Insecticides (India)’s first-half earnings and cash flow?

Insecticides (India)’s first-half consolidated revenue and profit both declined year on year despite the September-quarter sales increase. Revenue from operations for the half year ended September 30, 2026 was Rs 1,297.84 crore, down 2% from Rs 1,328.83 crore in the corresponding prior-year period. Profit after tax decreased 15% to Rs 100.04 crore from Rs 117.21 crore, while profit before tax fell to Rs 134.18 crore from Rs 156.31 crore.

Operating cash outflow narrowed in the first half, although working capital continued to consume cash. Net cash used in operating activities was Rs 73.39 crore for the half year ended September 30, 2026, compared with Rs 121.10 crore used a year earlier. Trade receivables increased by Rs 234.56 crore and inventories by Rs 33.61 crore, partly offset by a Rs 92.64 crore increase in trade payables; cash generated from operations was negative Rs 41.64 crore before income-tax payments.

How did Insecticides (India)’s balance sheet change by September 2026?

Insecticides (India)’s consolidated balance sheet expanded by September 30, 2026, led by higher receivables, inventory and capital work-in-progress. Total assets stood at Rs 2,228.95 crore, compared with Rs 2,000.18 crore at March 31, 2026. Trade receivables rose to Rs 719.10 crore from Rs 486.97 crore, inventories increased to Rs 813.82 crore from Rs 780.21 crore, and capital work-in-progress rose to Rs 159.22 crore from Rs 118.57 crore.

Borrowings and cash balances shifted over the six-month period. Current borrowings increased to Rs 220.96 crore at September 30, 2026 from Rs 125.50 crore at March 31, while cash and cash equivalents decreased to Rs 35.94 crore from Rs 87.23 crore. The cash-flow statement recorded Rs 55.76 crore of purchases of property, plant and equipment, intangible assets and capital work-in-progress, compared with Rs 40.72 crore in the prior-year first half, and Rs 67.50 crore of inter-corporate loans given.

What did Insecticides (India) disclose about operations and dividends?

Insecticides (India) disclosed one reportable business segment, Agro-Chemicals, rather than separate financial results for Technical and Formulation products. Its consolidated accounts include subsidiaries IIL Biologicals Limited and Kaeros Research Limited, as well as jointly controlled entity OAT & IIL India Laboratories Private Limited. The jointly controlled entity contributed a Rs 23.09 lakh share of net profit in the September 2026 quarter.

The board declared an interim dividend of Rs 5 per equity share on November 5, 2026. The audit committee reviewed and recommended the unaudited consolidated results, which the board approved on that date. The joint auditors conducted a limited review, while the two subsidiaries reported combined quarterly revenue of Rs 61.10 crore and profit after tax of Rs 4.63 crore.

Conclusion

The September-quarter result shows that Insecticides (India) converted an 8% increase in consolidated revenue into a 5% decline in profit after tax, as total expenses rose 9% and finance costs reached Rs 6.58 crore. The first-half comparison was more subdued, with revenue down 2% to Rs 1,297.84 crore and profit after tax down 15% to Rs 100.04 crore.

The next disclosed shareholder event is the Rs 5-per-share interim dividend declared on November 5, 2026. Subsequent results will show whether trade receivables of Rs 719.10 crore, current borrowings of Rs 220.96 crore and cash of Rs 35.94 crore at September 30 move alongside revenue and operating cash flow.